M11 Credit curates the first Prime Brokerage Credit Vault

Overseeing a fixed-rate pool, channeling funds into prime brokerage activities

Expanding credit marketplace

Following the successful launch of the Credit Vault in partnership with Fasanara Digital, and Bastion Trading, Pareto’s vaults continue expanding the credit offerings, this time on Optimism, by onboarding a new pool curator: M11 Credit focusing on credit underwriting.

With Pareto’s Credit Vaults, Idle aims to lead the way in bringing private credit on-chain. Its new primitive allows users to participate in private credit pools and lend directly to businesses (borrowers). This design enables transparent and efficient lending, with lower settlement costs and greater automation. Traditional private credit benefits include tailored terms for borrowers, risk tranching for varied investor appetite, and, generally, attractive yields. Idle’s on-chain offerings share these perks.

M11 Credit, the credit arm of investment firm Maven 11, will be in charge of underwriting and risk monitoring activities, serving as the first independent Credit Vault curator. It will offer its skillset and know-how to focus on the Prime Brokerage vertical.

“This Prime Brokerage vault marks a significant step in the evolution of decentralized finance (DeFi) capital formation. By utilizing Idle protocol’s secure platform and leading Prime Brokerage strategies, M11 Credit and its partners are setting a new standard for institutional capital in the digital asset space”, said M11 Credit Director, Peter Salyga.

The Credit Vault lends funds to an SPV managed by a top-tier Prime Broker to facilitate financing to end-counterparties (such as Trading Firms, Hedge Funds, etc.) while being backed by layers of structural protections, including loan participations, an equity tranche, transactional-level collateralization, and real-time risk engine.

It offers a fixed lending rate, which is updated monthly, ensuring predictability for liquidity providers while reducing operational overhead for borrowers. Unlike traditional lending models, Credit Vaults guarantee 100% fund utilization during each cycle, aligning the interests of both liquidity providers and borrowers.

This permissioned vault leverages Keyring’s KYC automation, seamlessly aligning institutional compliance requirements with DeFi’s permissionless infrastructure.

Credit Vaults’ On-chain Advantages

The launch of Pareto’s Credit Vaults signifies a leap forward for DeFi, effectively allowing for person-to-business (P2B) lending on-chain. By providing transparency and adaptability to both borrowers and lenders, Idle is positioned to drive future growth in on-chain private credit.

By providing transparency and adaptability to both borrowers and lenders, Idle is positioned to drive future growth in on-chain private credit.

“We are poised to welcome M11 Credit to bring seamless, cost-efficient credit access to DeFi,” said Matteo Pandolfi, CEO of Idle Labs. “Our focus is to keep building technology that reduces transaction costs and empowers both borrowers and credit markets through on-chain standardization. This advancement allows borrowers to save thousands of dollars per loan and brings us closer to building a highly liquid marketplace for credit, maximizing value and accessibility for borrowers, lenders, and underwriters”.

Optimism reward program

The vault is available on Optimism and comes with a dedicated reward campaign, airdropping OP tokens to liquidity providers at the end of every cycle.

Interested liquidity providers can access the vault by visiting pareto.idle.finance. They will first need to complete a KYC whitelisting process to make a deposit. Minimum deposit size requirements apply.

About Idle

Idle is a DAO that empowers the DeFi market with robust yield automation and hedging instruments, facilitating its expansion and establishing the foundation for a sustainable credit financial ecosystem via a more efficient and risk-adjusted capital allocation.

Pareto is the new credit infrastructure product focusing on onboarding traditional finance institutions in lending activities on-chain.
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About M11 Credit

M11 Credit, part of the M11 Group, offers various fixed-income opportunities to capital allocators and provides credit solutions to established (crypto-native) companies and DeFi protocols. The team excels in both off-chain and on-chain deal structuring, implementing comprehensive covenants beyond standard industry documentation.
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